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Jeff Gundlach recomends Short Term High Quality Bond to preserve wealth in 2019 ,Unfortunately in India they have stopped selling High Quality Gsec bond after recent changes by MF ....Now its just 10 Year GSec

(Bloomberg) -- Jeffrey Gundlach said yet again that the U.S. economy is gorging on debt.

Echoing many of the themes from his annual "Just Markets" webcast on Tuesday, Gundlach took part in a round-table of 10 of Wall Street’s smartest investors for Barron’s. He highlighted the dangers especially posed by the U.S. corporate bond market.Prolific sales of junk bonds and significant growth in investment grade corporate debt, coupled with the Federal Reserve weaning the market off quantitative easing, have resulted in what the DoubleLine Capital LP boss called “an ocean of debt.”

The investment manager countered President Donald Trump’s claim that he’s presiding over the strongest economy ever. The growth is debt-based, he said.

Gundlach’s forecast for real GDP expansion this year is just 0.5 percent. Citing numbers spinning out of the USDebtClock.org website, he pointed out that the U.S.’s unfunded liabilities are $122 trillion -- or six times GDP.

“I’m not looking for a terrible economy, but an artificially strong one, due to stimulus spending,” Gundlach told the panel. “We have floated incremental debt when we should be doing the opposite if the economy is so strong.”Stock Bear

Gundlach is coming off another year in which his Total Return Bond Fund outperformed its fixed-income peers. It returned 1.8 percent in 2018, the best performance among the 10 largest actively managed U.S. bond funds, according to data compiled by Bloomberg.

Gundlach expects further declines in the U.S. stock market, which recently have steadied after reeling for most of December since the Great Depression. Equities will be weak early in the year and strengthen later in 2019, effectively a reversal of what happened last year, he said.

“So now we are in a bear market, which isn’t defined by me as stocks being down 20 percent. A bear market is determined by the way stocks are acting,” he said.

Rupal Bhansali, chief investment officer of International & Global Equities at Ariel Investments, picked up on Gundlach’s debt theme in the Barron’s cover story. Citing General Electric’s woes, she urged investors to focus more on balance-sheet risk rather than whether a company could beat or miss earnings. Companies with net cash are worth looking at, she said.

Despite the surge in outstanding debt last year, markets aren’t signaling any particular concern over the U.S. government’s creditworthiness. The yield on benchmark 10-year Treasuries dropped to 2.70 percent on Friday from a 2018 high of about 3.26 percent in October.

There's always a good amount of money when bankers are looking for bail-outs & bonuses.Trillions are conjured out of thin air to pay off bets gone sour and national debt is run up in various "stimulus" rounds which sees that money mostly going into the pockets of those crooks.

But when it comes to the proletariate, a call for belt tightning and inflating away their savings, wages and taxing is what's perscribed.

India should take care not to follow bullsh&t theories from academics / economists lest it lead to the situation above.

Atleast in my city Mumbai in India life is better in some sense then it was 10 yrs back better infra , lots of malls , new Metro etc but worse in other ways higher cost of living , higher cost of food etc , bad air quality ......so cant really compare you gain some but you loose others

Central banking autonomy in the west has led to crony capitalism and the dangerous illusion that some wise man sitting up in an ivory tower knows what's best for the economy.

Its attracted a hoard of rent seekers looking to milk society out of wealth they had no part in earning. These parasites have got to a point where they claim the money you earned is not yours to keep - the very definition of capitalism.

India should keep well away from the notion that bankers should control the monetary system or run the economy like some Soviet economic tsar.

Austin wrote:Atleast in my city Mumbai in India life is better in some sense then it was 10 yrs back better infra , lots of malls , new Metro etc but worse in other ways higher cost of living , higher cost of food etc , bad air quality ......so cant really compare you gain some but you loose others

Mumbai is not representative of most of India.Wealth will flow in and continue to flow in as there are almost no other financial centers in the country.

For now and perhaps the next 15 years, India's economy can grow on the demographic dividend alone if nothing else. The average age of an Indian is quite young - something like 17 yrs old vs 40 to 45 in the west.The first of many herds of these Indian buffalos are/have entered the work force and this will go on for quite some time.

Once this easy growth spurt is done however, then comes the hard part.At that point, no longer will consumption and services alone fuel the economy.Like a star which burns the lightest elements like Hydrogen and Helium first, it then has to fuse increasingly heavier elements as the Hydrogen gets used up. That nuclear reaction becomes increasingly harder and finally hits a wall once the star has only Iron which is almost impossible to fuse.

For now India is fusing hydrogen and generating economic growth as there is lots of it and it's easy to do.

The only thing that can ruin this natural growth process is Central banking.Jumping in to "manage" the economy with idiotic theories will destroy what should be a naturally occurring economic growth cycle.

‘US should look for its problems at home’ – Russian minister on Soros rant about ‘dangerous’ China

Washington should focus on actually fixing its domestic problems instead of searching for external enemies to blame them on, Russia's Minister for Economic Development Maksim Oreshkin said.

The remarks were in response to the words of liberal billionaire George Soros, who lashed out at China speaking at the Davos economic forum in Switzerland.China is not the only authoritarian regime in the world but it is the wealthiest, strongest and technologically most advanced,” Soros said. “This makes Xi Jinping the most dangerous opponent of open societies.”

China brushed off the comments, saying that “statements by certain people, which portray black as white and distort facts, are completely pointless and not worthy of even a rebuttal.” Aside from Beijing, Soros has also expressed similar concerns about Russia.According to Oreshkin, the US should stop trying to blame the troubles of “open societies” on someone else, but look for the root of its problems at home. “Look at what is happening in America. Over the past 30 years real income of the middle class and below haven't grown almost at all. The expenses for healthcare and education have risen trifold, even taking inflation in account,” Oreshkin told RT during a press conference in Davos. “Naturally, it has led to the growth of dissent in America, becoming one of the factors in Donald Trump, with all his peculiar rhetoric, becoming the president.”

The problems are within the US. An external enemy, which impedes them and causes all the trouble in the US – whether Russia or China – is just substitution of concepts.

The official warned that such an approach – expressed by Soros and other figures of the US elite – sows nothing but confrontation, which ultimately harms the US itself end impedes economic growth worldwide.

Hope Indian govt is not dumb enough to be leaving it's gold in a foreign vault.It's an invitation for theft.

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Bank Of England Refuses To Release Venezuela's Gold

The Bank of England declined to comment on its handling of Venezuelan gold, saying it “provides banking services – including gold custody services – to a large number of customers” and “does not comment on any of those relationships.”

Austin wrote:Neshant check this short video when you get a chance , Let me know what do you make of this on QE with some stastics

I watched it. I can't say I got any new information out of it.

QE was not to benefit the masses but primarily a means of transferring the gambling losses of banks onto savers, wage earners, pensioners and society at large.

The second thing is the countries he specifies as not having done much QE had in fact offloaded those gambling losses onto the public ledger as national debt under the banner of "stimulus" and other fancy named programs.

Yes you are right , Indeed you must have been aware of this but this was a short video backed with stastics , He also stated QT is good for Gold

I wonder why US didnt spend some percentage of QE money on Infrastructure which would have been more visible to even common people rather then investing in Stocks and promoting buyback etc , consider even the latest report by MSM